The Changing Energy Landscape: New Market Access Initiatives TD Calgary Energy Conference July 9, 2013 J. Richard Bird Executive Vice President, Chief Financial Officer & Corporate Development
Legal Notice This presentation includes certain forward looking information (FLI) to provide Enbridge shareholders and potential investors with information about Enbridge and management's assessment of its future plans and operations, which may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Although we believe that our FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. FLI inherently involves a variety of assumptions, risks, uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in our FLI. Material assumptions include: expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approvals for Enbridge’s projects; anticipated in-service dates and weather. Our FLI is subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, construction schedules, weather, economic and competitive conditions, exchange rates, interest rates, commodity prices and supply and demand for commodities, including but not limited to those discussed more extensively in our filings with Canadian and US securities regulators. The impact of any one risk, uncertainty or factor on any particular FLI is not determinable with certainty as these are interdependent and our future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by law, we assume no obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this presentation is expressly qualified in its entirety by these cautionary statements. This presentation may make reference to certain financial measures, such as adjusted net income, which are not recognized under GAAP. Reconciliations to the most closely related GAAP measures are included in the MD&A filings and/or Supplementary Financial Information available on our website or in the slides that accompany this presentation, if applicable. 2
Enbridge’s Energy Infrastructure Asset Base Norman Wells Zama Fort McMurray Edmonton Quebec City Hardisty Clearbrook Montreal Portland Superior Toronto 2012 2012 Toronto Casper Chicago Adjusted Adjusted Salt Lake City Earnings Patoka Earnings Cushing 16% 65% 65% Houston Gas Distribution Liquids Pipelines Wind Power Generation Solar Power Generation Waste Heat Recovery Edmonton Geothermal Power Generation Power Transmission Fort St. John Edmonton Toronto Sarnia 2012 2012 Adjusted Adjusted Chicago Earnings Earnings 4% 15% 15% Houston Gas Pipelines Renewable Energy 3
Strong Value Creation Track Record Enbridge Performance Relative to S&P/TSX Composite Index As at December 31, 2012 Enbridge Inc. 25% S&P/TSX Composite Index Total Shareholder Return CAGR 20% 19% 20% 16% 15% 9% 10% 7% 5% 1% 0% 1 Year 5 Year 10 Year North American 89% 100% 96% Peer Group Percentile 4
Global Incremental Oil Demand (2010 – 2030) MMbpd 8.0 +7.4 6.0 +4.1 4.0 +3.3 +2.9 +1.5 +1.5 2.0 +0.4 +0.4 0.0 -0.5 -2.0 -1.7 -2.1 -4.0 OECD OECD OECD Russia Other Latin Middle Other OPEC India China Europe America Asia Eurasia America East & Asia Oceania Africa Source: Organization of the Petroleum Exporting Countries. “World Oil Outlook “. 2012. 5
Canadian Oil Production Forecast MMbpd 8.0 7.0 6.0 3.3 MMbpd 5.0 4.0 3.0 2.0 1.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Oil Sands Conv. Heavy Conv. Light and Medium Pentanes/Condensate Source: Canadian Association of Petroleum Producers. “Crude Oil: Forecast, Markets & Transportation”. June 2013. 6
North American Crude Oil Differentials Pricing based on YTD 2013 - Daily Average As at June 26, 2013 (USD per barrel) Asia EDM WCS Light $90 $104 $72 Bakken Light $92 Brent* $111 WTI $94 Light Crude Heavy Crude Maya LLS $109 $100 *Brent price is a landed price on US East Coast/ US Gulf Coast. Assumed tanker freight cost of US$2.00 per bbl. 7
Western Canada & Bakken – Pipelines Export Capacity versus Export Supply 8,000 7,000 TCPL EA, 600 TMX, 550 6,000 NGP, 525 XL, 525 Volume (KBPD) 5,000 KSL, 590 4,000 3,000 ENB - Ex Superior, 1930 ENB - Ex Superior, 2730 2,000 Clearbrook/Superior, 300 W. Access, 450 1,000 TMPL, 260 Western Cdn Refineries, 586 (AVG) 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Enbridge Internal Forecast 8
Liquids Pipelines – Alberta Regional Infrastructure • Significant competitive position Imperial Oil Suncor (Kearl) (Firebag) − Largest regional operator 4 7 Fort Husky Suncor McMurray − Dual hub deliverability (Sunrise) (MacKay River) 5 − Bridging capacity 6 AOC Nexen (Hangingstone) (Long Lake) 8 Cheecham 9 ConocoPhillips Terminal • 9 commercially secured growth (Surmont) projects in-service by 2016 Statoil Cenovus (Leismer) (Christina Lake) 10 − $3.9 billion investment Cold Lake 1 Alberta 2 3 • Potential additional Edmonton opportunities Lloydminster − $3.7 billion Hardisty Hub Waupisoo Pipeline (up to 580 kbpd) Athabasca Pipeline (up to 600 kbpd) Athabasca Twin Pipeline (initially 450 kbpd) Wood Buffalo Pipeline Woodland Pipeline Extension Project Connections 9
Liquids Pipelines (Enterprise Wide) – Mainline System, Market Access Extensions/Expansions Gulf Coast Access/ Eastern Access/ Light Oil Market Access Programs Opening New Continental Markets for up to 1.7 MMbpd Fort McMurray 2013 • Line 5 Expansion (+50 kbpd) Edmonton • Line 62 Expansion (+105 kbpd) Hardisty • Line 9A Reversal (+50 kbpd) Kerrobert • Toledo Pipeline Partial Twin (+80 kbpd) • Seaway Pipeline Expansion (+400 kbpd) Regina +320 Cromer kpbd 2014 Gretna Montreal Superior • Line 6B Replacement (+260 kbpd) Westover • Line 9B Reversal + Expansion (+320 kbpd) • Flanagan South Pipeline (+585 kbpd) Buffalo • Seaway Pipeline Twin + Lateral (+450 kbpd) Sarnia • Alberta Clipper (+120 kbpd) • Southern Access (+160 kbpd) Chicago/ Toledo Flanagan +80 2015 kbpd +300 • Southern Access Extension (+300 kbpd) Patoka kbpd • Eastern U.S. Gulf Coast Access (+440 kbpd) Cushing • Edmonton to Hardisty (+570 kbpd) • Alberta Clipper (+230 kbpd) • Southern Access (+640 kbpd) • Chicago Area Connectivity (+570 kbpd) 2016 Port Arthur Houston • Sandpiper Pipeline (+225/+375 kbpd) • +440 Line 6B Expansion (+75 kbpd) kbpd +585 ~$17 Billion Investment kbpd Commercially Secured 10
Liquids Pipelines – East Coast Market Access Canadian and U.S. East Coast Refinery Markets 11
Liquids Pipelines – West Coast Market Access Current Status: Next 12 Months: • • Positive TERMPOL report Satisfy B.C. 5 conditions • • JRP hearing concluded Additional R-O-W First Nations support • • 60% R-O-W First Nations support Coastal First Nations support • JRP decision • Federal aboriginal consultation/ Cabinet decision 12
An Exceptional Array of Attractive Investment Opportunities 2012 – 2016 Enterprise Wide Growth Capital $37 B Project Cost by In-Service Date $9 (2012 -2016) Unsecured* Billion 2012 $3 2013 $5 YTD ROY $28 2014 $9 Commercially Billion Secured 2015 $8 2016 $3 $, Billions 1 * Unsecured growth capital is included in the funding plan 13
Tilted Return Profiles Enbridge Inc. First Full Full Life Years to Project / Program Investment Year DCF ROE Attain ($ Billions) Eastern Access 1 $2.2 2014 low double digits 4 Western USGC Access 2 $6.3 2015 low double digits 5 Light Oil Market Access 1,2 $3.2 2016 low double digits 4 Edmonton to Hardisty Expansion 1 $1.8 2016 low double digits 0 1 Inclusive of supporting Canadian Mainline expansion capital and CTS effects. 2 Inclusive of 75% joint funding of U.S. Mainline components and CTS effects. 14
Enterprise Wide – Secured Growth Capital by Return Profiles Flat Profile Tilted Profile ($ Billions) ($ Billions) Liquids Pipelines $1.4 $2.4 – Alberta Regional Infrastructure Liquids Pipelines $7.7 $10.9 – Market Access Initiatives Gas Pipelines $2.0 $1.1 − Gas Distribution $0.6 − Green Power $1.4 TOTAL $11.7 $15.8 15
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